SHEL Should I Buy
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Shell PLC is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available. While the company shows strong financial performance in net income and EPS growth, the technical indicators, options data, and mixed analyst ratings do not provide a compelling entry point. Additionally, hedge fund selling and activist lawsuits present potential risks. It is better to hold off for now and monitor for clearer bullish signals or improved market conditions.
The MACD is below 0 and negatively contracting, indicating bearish momentum. RSI is neutral at 43.135, showing no clear overbought or oversold conditions. Moving averages are converging, suggesting indecision in the market. The current price is near the pivot point (89.821), with resistance at 92.644 and support at 86.998. Overall, the technical indicators do not suggest a strong buy signal.
Shell's buyback program reflects confidence in its stock. The company is operating its Pernis refinery at maximum capacity, which could benefit from rising jet fuel demand amid Middle East tensions. Analysts like Scotiabank and TD Cowen have raised price targets, indicating some optimism.
Hedge funds are selling significantly, with a 10019.72% increase in selling activity. Activist lawsuits and environmental concerns could pose long-term risks. Analyst ratings are mixed, with some downgrades and neutral stances. The Iran ceasefire extension adds geopolitical uncertainty, and high implied volatility suggests potential price instability.
In Q4 2025, Shell's revenue dropped by 3.30% YoY to $64.09 billion. However, net income surged by 345.47% YoY to $4.13 billion, and EPS increased by 407.14% YoY to 0.71. Gross margin improved to 16.25%, up 5.86% YoY. These metrics indicate strong profitability despite a revenue decline.
Analyst sentiment is mixed. Scotiabank raised its price target to $122 with an Outperform rating, while BNP Paribas downgraded the stock to Neutral with a $101 price target. TD Cowen and Wells Fargo raised their targets but maintained Buy and Equal Weight ratings, respectively. The mixed ratings reflect uncertainty in the stock's future performance.
